Time to talk about money
A recent study found that American adults are likely to talk about marital conflicts, mental illness, drug addiction, politics and religion before talking about money. In fact, only about a third of Americans talk about money with their friends and peers. Not talking more freely about money can have costly consequences.
If your children are not raised to be financially savvy, for example, they might end up deep in credit card debt, not having learned how (and why) to avoid it. At work, your colleagues may not think to ask for a raise, as you did. And at home, if you or a family member dies without having discussed final financial wishes, it can cost survivors unnecessary dollars and headaches.
Within families and without, we would do well to discuss our financial situations and goals. Talk about your income and your expenses. Discuss mortgage payments, car payments, insurance and the cost of college. Talk to friends and family members about how they bought their homes or put their kids through school, as you may get some good ideas. Talk about longterm care insurance and living on a fixed income with your parents and those in or near retirement. Share your financial fears and successes.
As you raise your children, talk regularly about what various things cost and how you pay for them. Let them see you paying bills, managing your credit cards and making investments. You might even invest in stocks with them and follow the progress of your holdings together.
Talk with your spouse about money, too — and be sure to not keep secrets, such as hidden debt or spending splurges.
You might gain some useful insights and learn some strategies by asking how your friends and peers spend their paychecks, whether they’re contributing a lot to retirement accounts, and what their financial goals are. (And they might learn from you!)
If you’d rather talk about money with people you don’t know, visit some online discussion boards, such as ours at Boards. Fool.com. Finances should not be a taboo topic.